Slapping a broadcast signal into an over-the-top stream is generally harder than it sounds.
But streaming services need to have local news and sports, too.
VUit, for one, helps broadcasters create and distribute FAST channels so they can get a leg up in CTV.
As streaming platforms seek more content, VUit has been filling that gap. VUit channels tripled in viewership minutes in 2021.
VUit reported a 31% year-over-year increase in local news streaming ad revenue. CPMs went up 37% in the first half of 2022, which is good news for the broadcasters looking for additional revenue from streaming distribution.
VUit reported a 31% year-over-year increase in local news streaming ad revenue. CPMs went up 37% in the first half of 2022, which is good news for the broadcasters looking for additional revenue from streaming distribution.
VUit is pinning most of its future growth on bringing local news to streaming platforms.
News is one of the last hooks of legacy TV.
But TV audiences are in the middle of a shift to streaming, and they want live content, Syncbak CEO Jack Perry said. That shift is why streaming services are scrambling to add news and sports to their content libraries.
248 local news stations across 161 US markets use VUit to distribute their broadcasts through streaming in a FAST format.
“We give local TV stations the technology to sell their inventory direct,” Perry said. “And if there are still pods left to fill, then we go to the programmatic side of things.”
Even though VUit preferences direct deals, it also reported 49% year-over-year growth in revenue for its DSP partners. VUit didn’t name those partners, but confirmed it recently hired a salesperson from a major TV network to sell DSPs on VUit’s inventory offerings.
The hyperlocal targeting inherent in local news commands premium pricing in the marketplace. The more local the audience, the more a local advertiser will be willing to pay in CPMs, Perry said.
For example, a local hunting and fishing shop is willing pay much higher premiums to target audiences in driving distance of their shop (aka the designated market area) than a national advertiser doing a linear buy.
TV static goes dynamic
But getting local news broadcasts to work in a streaming environment isn’t always easy.
Live news streaming is fairly simple on vMVPDs, such as fuboTV, because they distribute 24-hour live linear content, just like FAST channels. (The main difference between vMVPDs and FAST channels is that FAST is free.)
But distribution is a bit more complicated for VOD streaming apps, including those on Roku and Amazon Fire TVs. “Dynamic ad insertion (DAI) is usually involved anywhere beyond vMVPDs,” Perry said. VUit typically swaps out over-the-air ads in FAST channel pods using DAI, often because of content licensing agreements between networks and VOD streamers, like Hulu. (Hulu has a separate subscription tier for live TV, but it’s pretty expensive.)
Regardless of how it happens, the fact still stands: Even loyal news viewers are finally cutting the cord.
